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Chennai-based Shasun Pharmaceuticals Ltd has signed the Joint Venture (JV) agreement with Bangalore-based pharmaceutical firm SeQuent Scientific Ltd to develop, manufacture and sell veterinary products including active pharmaceutical ingredients (API) and formulations in the global market.
In line with the JV agreement, Shasun has also executed a slump sale agreement today transfering its Vizag facility to JV company, said a company announcement. SeQuent and Shasun will hold 73% and 27% stake respectively in the JV firm, it further added.
The JV company is expected to be operational in the first quarter of 2014-15, subject to the customary closing conditions, said the company.
As reported earlier, the company, in July 13, last year, has signed a Letter of Intent (LOI) with SeQuent Scientific Ltd as a preliminary step to form a JV. During the time of announcing the LOI, Shasun said that contributions will be made by both the companies by way of transfer of identified assets, contracts and licenses.
The JV would be an exposure for Shasun into the veterinary medicine segment, where it has not been operating so far in the segment, according to company officials.
While the company does not have exposure in the segment, it would bring in contacts which could be used for the growth of the Joint Venture.
SeQuent Scientific currently has presence in various Pharmaceutical segments including the APIs, Animal Health, Analytical Services, CRAMS and speciality chemicals. The company claims as the world's largest producer of Anthelmintics (a drug used to treat infections caused by parasitic worms) and a strong player in the veterinary API business.
Shasun Pharma currently manufactures active pharmaceutical ingredients and formulations and offers contract research and manufacturing service for APIs in India and the UK.
